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The Kumbh Currency: What drives the Mela economy

From luxury tents that cost up to Rs 1 lakh a night to budget homestays, from corporate firms to small businesses that hope the event will keep them afloat — days ahead of the Maha Kumbh, The Indian Express travels to Prayagraj, where a pop-up economy has taken shape on the banks of the Ganga

kumbhThe Mela officials estimate revenues of Rs 25,000 crore from the event and an overall impact of Rs 2 lakh crore on the economy of the state. (Express Photo by Vishal Srivastava)

Beneath the kaleidoscopic chaos of the Maha Kumbh Mela in Uttar Pradesh lies an economic juggernaut, powered by the faith of an estimated 40 crore people who are expected to descend on the banks of the Ganga in Prayagraj starting January 13.

In his seventh-century writings, Chinese traveller Xuanzang documented this convergence of faith and commerce at the Kumbh Mela, where rulers and wealthy merchants are said to have bathed in the sacred waters and offered lavish donations. That spirit of enterprise has lived on in the modern version of the 40-day event, attracting businesses from across India and transforming this stretch of the Ganga into a sprawling arena of spirituality and trade.

It is a vast, pulsating marketplace where every decision — whether it is to set up a food stall, lease a tent city, or launch a floating jetty room — carries the weight of opportunity and risk.

The Yogi Adityanath-led BJP government has initiated 549 projects, from infrastructure development to sanitation, for the Maha Kumbh at a budget of Rs 6,990 crore. In comparison, Kumbh Mela 2019 had 700 projects at a cost of over Rs 3,700 crore. The Mela officials estimate revenues of Rs 25,000 crore from the event and an overall impact of Rs 2 lakh crore on the economy of the state.

The Yogi Adityanath-led BJP government has initiated 549 projects, from infrastructure development to sanitation, for the Maha Kumbh at a budget of Rs 6,990 crore. (Express Photo by Vishal Srivastava)

From luxury tents with tariffs of up to Rs 1 lakh a night to lucrative corporate sponsorships; from the bustling puja market where small-time traders bet their savings on a 10-fold turnover to the boatmen of the Ganga who live in the hope that the event will keep them afloat — Kumbh is as much about living as it is about faith.

A mela of options

The historical city of Allahabad has seen several Kumbhs — since “anaadi kaal” or times immemorial, as the locals say — and gone through many iterations, including a name change to Prayagraj. But this year, as the government launches a massive blitz as it prepares to host what is likely to be a record turnout, the city and its economy are hoping to get a leg-up.

Officials said the government has focussed on creating a massive economic impact through the Mela. For the next 40 days, the Mela grounds, spread across 4,000 acres on the banks of the river, will host pilgrims in a range of tents — from basic to luxury — and offer them food options through the many stalls.

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Special corridors have been designed to handle an influx of 10,000 to 20,000 pilgrims at a time. (Express Photo by Vishal Srivastava)

As part of the process to allot space at the Mela grounds, the state government had invited private entities to bid for spots through a tender. At the end of a competitive bidding process, those with the highest bids were allotted stalls. The first installment of 50 per cent had to be given to the government within seven days of allotment, while the second and third installments had to be submitted within 45 days from the issuance of the allotment letter.

Additional District Magistrate Vivek Chaturvedi says, “We have received Rs 1-2 crore from each bidder to set up stalls in Kumbh. The impact is immense.”

On the huge turnout expected at the Mela, he added, “We took the help of Allahabad University to figure out how to increase the footfall at the Mela by augmenting the infrastructure. Special corridors have been designed to handle an influx of 10,000 to 20,000 pilgrims at a time. Floating jetties, water sports and temple tourism have been introduced to enhance the appeal of the event while boosting tourism retention.”

Professor A K Malviya, Dean of Commerce at University of Allahabad, who has worked with the UP government on bolstering the economic impact of the Mela, says, “We did a socio-economic impact study of the Kumbh Mela and the government adopted many of our suggestions. The idea was to make it a tourist-friendly spot with improvements in parking facilities, ghat development, cordial policing, multilingual signages, and improved sanitation at temples.”

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The historical city of Allahabad has seen several Kumbhs — since “anaadi kaal” or times immemorial, as the locals say — and gone through many iterations, including a name change to Prayagraj. (Express Photo by Vishal Srivastava)

Regional Tourism Department officer Aparajita Singh says, “There was a push to improve hotel infrastructure. We now have 100 homestays registered with us compared to just 15 last year. There are over 7,000 vendors in the city, of whom 2,000 have undergone skill development training for digital payments. We have set up a team of 1,000 guides, and expanded on the food court systems to ensure we give tourists all modern facilities.”

Food and hospitality are among the biggest drivers of this pop-up economy.

Brothers Mitesh and Ashwin Thakkar, directors of RR Hospitality Pvt Ltd., have invested Rs 12-13 crore to establish food courts and outlets across 14 of the 25 sectors of the Mela, employing over 500 workers. Their most expensive outlet was won after a bid of Rs 1.23 crore at a food court near the Sangam area.

“We were competing for a tender for Rs 7 crore, but lost out to an amusement park vendor who bid Rs 11 crore,” says Ashwin.

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So far, they have managed to attract international brands such as Starbucks, Coca Cola and Domino’s and are aiming for a Rs 100-200 crore turnover. Despite missing out on bagging a contract from McDonald’s due to “time constraints”, they say they have already achieved break-even with sponsorship backing from major brands.

For the next 40 days, the Mela grounds, spread across 4,000 acres on the banks of the river, will host pilgrims in a range of tents — from basic to luxury — and offer them food options through the many stalls. (Express Photo by Vishal Srivastava)

In March last year, the brothers took a boat trip across the Ganga as part of a reconnaissance trip, as they scouted for locations for food stalls at the Mela.

For Mitesh, speed and flexibility is key. “See, we were planning to set up a food stall near the Dome City (on the Arial Ghat, near Sangam). But that is still being constructed and the main Mela dates are almost here. So we took a decision to shift our food courts away from there,” he says.

Room for all

What’s staggering in scale is the investment on accommodation — for the next month and a half, every inch of the banks of the Ganga is prized real-estate.

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The UP government has set up 1.6 lakh tents, of which 2,200 are luxury tents and the rest are several smaller ones on the river banks. Besides, there are 218 hotels, 204 guest houses and 90 dharamshalas across the city.

The super-deluxe tents and villas, priced between Rs 18,000 and Rs 20,000 a day, include amenities such as private bathrooms, blowers, Wi-Fi, and even butler services. Premium accommodations, such as those at the privately owned Sangam Nivas Prayagraj on the river banks, command tariffs of Rs 1 lakh per night for two guests, featuring en-suite bathrooms, heating, and high-end services. Demand is high, with all 44 super-luxury tents at the property sold out on auspicious bathing days, UP government officials said.

The UP government has set up 1.6 lakh tents, of which 2,200 are luxury tents and the rest are several smaller ones on the river banks. (Express Photo by Vishal Srivastava)

The Uttar Pradesh State Tourism Development Corporation (UPSTDC) has four categories of tents — Villa, Maharaja, Swiss Cottage and Dormitory — with the prices ranging from Rs 1,500 a night for the dorms to Rs 35,000 for the high-end ones.

One of the highlights of the Mela stay is the Arial Dome City, run by Evo Life Space Pvt. Ltd., in collaboration with the UP Tourism Department. Spread over 3.25 acres of the river bank on the Arial Ghat, the 44 transparent domes, each with 32 sq ft space, claim to provide state-of-the-art comfort.

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However, with three days left for the Kumbh Mela, a team of workers are still setting up the domes. Inside these igloo-shaped structures, made of transparent plastic panels and supported by metal frames, violet drapes hang limply, some of it pooling onto the artificial grass floor below.

A night’s stay in these domes comes with three meals, bonfire and a trip to the Sangam, and a tariff of Rs 61,000. “We are almost booked but the preparations are continuing. Most of the domes in the area are nearing completion, we got the land very late,” says Mukesh, who was at the site, overseeing the construction of the domes.

Besides the tents on the river banks, there are hotels near the Mela site, built over nine months, that charge between Rs 10,000 and Rs 25,000 a night.

Shikhar Keshwani, owner of City Lights Inn, opened his hotel just a month ago. “Our hotel is 80 per cent booked for the whole month. On important dates, we are full,” he says.

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Private homestays have also mushroomed, with investments ranging from Rs 10 lakh to Rs 1 crore to accommodate visitors.

Dayanand Sharma, who spent over Rs 15 lakh on his homestay near the Sangam area, says, “We are hoping to triple our turnover. This will cover the construction cost and pay off the loan,” he says.

It’s not just the middle-class tourist who will have to shell out a fortune to stay in Prayagraj. Sadhus, who are allotted free land by their Akharas, have also been complaining about rising costs.

Private homestays have also mushroomed, with investments ranging from Rs 10 lakh to Rs 1 crore to accommodate visitors. (Express Photo by Vishal Srivastava)

Naga sadhu Digambar Bhavani Giri’s tent near the Sangam, propped up by poles, has asbestos sheets for the roof and wall. He says he spent Rs 10,000 on a green carpet to line the tent and over Rs 2,500 on firewood.

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Pancham Giri, another sadhu, shares that his savings of Rs 50,000 were fast running out. “The government should give us free firewood and carpets. The tents are of poor quality and offer no shelter from the cold,” he says.

Something for everyone

For small and large businesses on the Mela grounds and beyond, Kumbh represents both a gamble and an opportunity, where faith, hard work, and market dynamics intersect.

Professor Badri Narayan, Director of Govind Ballabh Pant Social Science Institute (GBPSSI) in Prayagraj, says that the Maha Kumbh Mela touches everyone — from a rag picker to a luxury hotel owner.

“According to most estimates, the Kumbh Mela may generate around Rs 200 crore in business this year. Small-time vendors, workers in the informal sector, and those providing everyday goods and services establish temporary livelihoods during the event. Even ragpickers benefit economically. This is a significant economic resource,” he says.

Mahendra Kumar Goyal, president of the UP chapter of the Confederation of All India Traders, says, “We predicted a turnover of Rs 25,000 crore from this event. This includes turnovers of Rs 5,000 crore from puja items, Rs 4,000 crore from dairy products and Rs 800 crore from flowers. The hospitality sector, especially the luxury hotels, is expected to have a combined turnover of Rs 6,000 crore.”

Small-time vendors, workers in the informal sector, and those providing everyday goods and services establish temporary livelihoods during the event. (Express Photo by Vishal Srivastava)

Alok Shukla, President of the UP chapter of the Confederation of Indian Industry (CII), describes the Maha Kumbh as a “golden opportunity” for local businesses, with “revenues equivalent to one year worth of business compressed into two months”.

At his food stall near Parade Grounds in the Sangam area, Ashish Mishra, after a string of phone calls to coordinate inventories, talks about why he is hopeful about his business. “On snan days, profits are 10 times higher than usual,” says Ashish, who has stocked up on potatoes, onions, tomatoes, rice and flour a month in advance. He spent Rs 92 lakh to bid for his stall. “If even a crore people spend Rs1 each, I’ll be happy,” he smiles.

Pankaj Mishra, who has set up one of the biggest kachori stalls at the Mela, says he spent Rs 92 lakh to set up the stall and employs over 100 workers, including cooks and cleaning staff. “It all depends on police barricading. If the devotees come, it’s fine. Otherwise, we’re done,” he says while settling the day’s wages for each of his workers.

Away from the Mela grounds, the river bustles with life as passengers settle into brightly painted wooden boats. Raju Nishad, a paddle boat operator, waits for customers — a group has just turned down his fee of Rs 75 per passenger.

“I had to take a loan of Rs 1 lakh to buy this boat. I will have to earn at least Rs 3-4 lakh this year if I have to survive.

Every time the VIPs come, our boats are stopped. I have to work twice as hard to earn,” he says. Minutes later, he finally gets his first ride of the day.

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